RAG SystemsRAG Systems
Artificial Intelligence and Machine Learning

How to Develop Production-Ready RAG Systems: 7 Best Practices

Explore how RAG boosts Generative AI with real-time data, smart retrieval, and enhanced accuracy.
RAG SystemsRAG Systems
Artificial Intelligence and Machine Learning
How to Develop Production-Ready RAG Systems: 7 Best Practices
Explore how RAG boosts Generative AI with real-time data, smart retrieval, and enhanced accuracy.
Table of contents
Table of contents
Introduction
What is Retrieval-Augmented Generation (RAG)?
Why RAG is Best Suited to Improve LLMs?
How Does RAG Architecture Work?
Why RAG Architecture Requires Cost, Scale, & Accuracy Tradeoffs?
7 Best Practices for Building Production-Ready RAG Systems
Conclusion
FAQs

Introduction

Suppose you’re in a courtroom, fighting a case concerning a labor dispute in your organization. As a standard practice, a judge’s rulings are based on their common understanding of the law. 

Although some instances require specialized niche expertise. So, judges summon court clerks to explore law libraries in search of specific cases they can cite. The court clerk in this scenario performs a role similar to the process of Retrieval Augment Generation (RAG).  

This article is a brief guide on Retrieval Augmented Architecture, its importance in improving LLMs, how it works, use cases, and how one can go about implementing it.

What is Retrieval-Augmented Generation (RAG)?

Retrieval Augmented Generation is a framework that allows generative AI models to retrieve information from reliable and specific data sources in real-time, enhancing their accuracy.

LLMs are neural networks. They’re measured by the parameters they contain. The parameters are a collection of patterns that represent how humans use words to form sentences. 

This parameterized knowledge enables LLMs to respond to general prompts. However, it doesn’t help users who want to retrieve any specific type of information. RAG fills this gap for LLMs. It enhances LLM performance by accessing external, real-time, and verified data and generating context-aware responses.

Why RAG is Best Suited to Improve LLMs?

To understand how RAG helps LLMs, let’s examine a common challenge that businesses face today.

Imagine you work for an electronics company that sells devices such as refrigerators, washing machines, smartphones, and laptops. You plan to create a customer support chatbot that helps answer frequently asked customer queries related to product specifications, warranty, and other topics. 

You decided to leverage GPT-3 or GPT-4 to build your chatbot. However, the following limitations of LLMs result in an inefficient customer experience.

why rag is best suited to improve llms

1. Retrieving Specific Information 

LLMs offer results based on their training data. A conventional LLM wouldn’t be able to answer the questions specific to the electronics you sell.

This is because the LLM wasn’t trained on data related to your products. Additionally, these LLMs have a cutoff date, which limits them to offering responses that are no longer current.

2. Hallucinations

LLM can generate confident false responses known as “Hallucinations.” They also, at times, offer inaccurate responses that are entirely related to your query based on imagined facts.

3. Eliminating Generic Responses

Language models often provide generic responses that lack contextual relevance. This approach wouldn't be practical for a customer support platform where personalized responses are crucial. 

RAG acts as a savior by blending the expertise of your LLMs with the specific product-related data from your database and user manuals. It provides accurate and reliable responses that align with your business needs.

How Does RAG Architecture Work?

Let’s understand how RAG functions in 8 simple steps.

1. User Query

As a user submits a query using the RAG interface, the prompt, whether straightforward or complex, commences the entire pipeline.

2. Chunking

The query is shared with the embedding model, which transforms it into a high-dimensional vector that captures its semantic meaning for retrieval.

3. Embeddings

The embedded query vectors are shared with the retrieval engine.

4. Vector DB Retrievals

The retrieval engine looks for a vector index of the database of embedded chunks from source documents to discover the most semantically relevant chunks. This is where the “search” process occurs, based on meaning rather than keywords.

How Does RAG Architecture Work?

5. Re-ranking

The system pinpoints the most contextually relevant passages from the vector index and shares them back with the RAG pipeline.

6. Prompt Construction

The retrieved chunks and original user query are merged to create a single context block.

7. LLM Generation

The context block is shared with the LLM to develop a natural language response combining the original query and the retrieved content.

8. Final Response

The RAG interface sends the final up-to-date reference-backed response to the user.

Why RAG Architecture Requires Cost, Scale, & Accuracy Tradeoffs?

Although RAG offers an effective strategy for optimizing LLMs, its real-time performance can vary due to factors such as latency, scalability, maintenance, and knowledge accuracy. An efficient RAG requires a balance between system complexity, long-term adaptability, and computational efficiency.

Here are the top 3 reasons to consider before implementing RAG.

Why RAG Architecture Requires Cost, Scale, & Accuracy Tradeoffs?

1. Latency & Computational Costs

The computational requirements of RAG impact both training and inference efficiency. While it is cheaper to train, RAG introduces real-time retrieval delays that can slow down inference, leading to 30–50% longer response times.

2. Scalability & Maintenance

The ease offered by updates and maintenance should be a primary consideration for evolving AI models. RAG is easier to maintain due to its ability to stay updated from external sources.

3. Knowledge Retention & Hallucination Risk

RAG offers many challenges when we talk about knowledge accuracy and hallucination risks. While they provide the convenience of automatic and timely knowledge updates, they're only as good as the authenticity of their retrieval source. Unreliable data sources or poor indexing can result in hallucinated responses.

7 Best Practices for Building Production-Ready RAG Systems

To implement RAG effectively and successfully, it is essential to follow a systematic approach. Here’s how you can do this following 7 simple steps.

7 Best Practices for Building Production-Ready RAG Systems

1. Maintaining Data Quality

To ensure updated information is fed to the RAG model, follow the practice of continuously updating the data sources. Try to include various sources of information, such as reputable journals, credible databases, case studies, white papers, and other relevant materials, to provide authentic and reliable information.

2. Model Training & Maintenance

Keep your model updated with evolving language use and information by retraining the model on a timely basis. Set up an ecosystem with tools and processes to monitor the model’s output. This would help keep tabs on accuracy, relevance, and biases in responses.

3. Ensure Scalability

Consider factors such as user load and increased data volume, and design a scalable RAG system from the outset. Manage intensive data processing by investing in appropriate on-premise resources, computational infrastructure, and cloud-based solutions.

4. Implement Protocols

Adhere to data compliance laws, introducing stringent protocols for data privacy and security. Conduct regular audits to stay informed about the latest developments in AI ethics and regulations.

5. Optimize User Experience

Enhance system accessibility by creating easy-to-navigate UIs using intuitive designs. Ensure AI's responses are clear, concise, and understandable.

6. Feedback & Testing

Conduct thorough testing of your RAG system, replicating real-time scenarios. Establish processes that allow you to incorporate user feedback into future updates.

7. Expert Collaboration

Seek guidance from subject matter AI experts and Data Analytics Consultants who are adept at what they do to create futuristic and scalable systems. 

Encourage acute involvement from your technical and non-technical teams. 

This holistic approach offers you a blend of outsourced Artificial Intelligence Service providers and your company’s domain-specific knowledge teams.

Conclusion

RAG bridges the crucial gap between general-purpose Large Language Models (LLMs) and domain-focused enterprise applications. By offering AI outputs in a curated, contextually relevant knowledge base, RAG ensures that responses are not just rational but also accurate, explainable, and tailored to business needs. 

This hybrid approach enables businesses to maintain data security, minimize hallucinations, and ensure regulatory compliance while achieving greater operational efficiency.

Leading organizations are already exploring fine-tuned RAG pipelines integrated with tools and domain-specific strategies to enhance productivity and innovation. As adoption accelerates, we foresee a move toward more customizable, multimodal, and real-time RAG applications.

At Maruti Techlabs, we specialize in designing, developing, and deploying scalable RAG-based solutions tailored to your unique business challenges. Whether you're looking to enhance customer experience, automate internal operations, or unlock hidden insights from your data, our team can guide you through the journey.

Connect with us today and commence your AI adoption journey.

FAQs

1. What is RAG in Generative AI?

RAG (Retrieval-Augmented Generation) is a technique that enhances generative AI by retrieving relevant external information in real time, allowing large language models to generate more accurate, context-aware, and up-to-date responses.

2. What are the main components of a RAG architecture?

RAG architecture comprises a retriever that retrieves relevant documents from a knowledge base and a generator (typically an LLM) that utilizes this retrieved content to produce coherent, informed, and contextually grounded responses.

3. What’s the relationship between Generative AI, LLMs, and RAG?

Generative AI uses LLMs to create content. RAG combines LLMs with retrieval systems, enabling them to go beyond static training data by incorporating real-time, external knowledge into generated outputs for improved accuracy.

4. What types of information and data does RAG make use of?

RAG uses structured and unstructured data, including documents, databases, PDFs, websites, knowledge bases, and other domain-specific content, to retrieve relevant context for enhanced response generation.

Pinakin Ariwala
About the author
Pinakin Ariwala


Pinakin is the VP of Data Science and Technology at Maruti Techlabs. With about two decades of experience leading diverse teams and projects, his technological competence is unmatched.

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